Government Stimulus, Amazon Shipping, Wayfair up 90%

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Government Stimulus Going Towards Groceries

Feedback from our most recent consumer survey indicates that around 60% of consumers have received a government stimulus check, with an additional 27% expecting to receive one soon. Of those who have received government stimulus, our data indicates that they are tending to spend more on groceries, rather than on general merchandise. Additionally, a large portion of surveyed consumers have not yet adjusted their spending patterns, despite this government stimulus.  

Amazon Shipping Times Returning to Normal
Source: press.aboutamazon.com

Amazon Shipping Times Returning to Normal
Bloomberg reported this week that Amazon expects overnight and two day Prime delivery times will likely return in coming weeks as the eTailer is catching up to COVID-19 related demand. Our research has indicated that many vendors, particularly in “non-essential” categories, were seeing elevated shipping times as a result of the crisis, although our most recent vendor benchmark at the end of April noted shipping times were already improving. One indication cited by Bloomberg was that Amazon lifted restrictions on the amount of inventory that vendors can ship into Amazon warehouses earlier this week. Our work has also shown that slower delivery times have negatively impacted demand on the platform, with consumers opting to use BOPIS options at omnichannel retailers and/or shop from other eTailers with faster shipping speeds. 

Wayfair 1Q Earnings; 2Q Trending Up 90% Y/Y
Wayfair reported its 1Q earnings, where it saw revenue growth moderate with US Direct Retail Revenues up 19.7% Y/Y (vs up 24.8% in 4Q19). However management also noted that growth sharply accelerated in late March and 2QTD, with gross revenues trending up 90% Y/Y, with growth coming across categories. This shows another example of eCommerce retailers benefitting from the consumer shift towards eCommerce amidst the COVID-19 crisis.  

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